JOHANNESBURG - A massive R58-million land fraud scandal has been uncovered in Ekurhuleni, with more than 200 vacant municipal stands in Villa Liza allegedly transferred into private hands without the City’s approval.
The Special Investigating Unit (SIU) says its investigation found that 208 of the 221 vacant stands examined were unlawfully transferred.
The properties, valued at more than R58-million, were allegedly sold for just R18,000 each, with the municipality receiving no revenue from the transactions.
According to the SIU, the transfers were facilitated using forged rates clearance certificates and powers of attorney, making the transactions appear legitimate.
The investigation also uncovered a striking detail: a deceased person was allegedly used as a fraudulent land agent in the scheme.
“We uncovered a deliberate scheme to defraud the municipality, 208 fraudulent transfers. One deceased person acted as the fraudulent land agent,” SIU head Leonard Lekgetho said.
The SIU says a private law firm allegedly played a key role in processing the illegal transfers.
However, investigators say they found no evidence that municipal officials participated in the scheme.
The City of Ekurhuleni says a criminal investigation involving the law firm is now under way.
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“We’re pleased that there is a criminal investigation ongoing that will be opened against the law firm,” Ekurhuleni Municipality spokesperson Phakamile Mbengashe said.
The City now faces the challenge of reclaiming the land and addressing the situation of people who may have purchased the properties without knowing they were allegedly part of a fraud scheme.
“For the people staying there, that’s part of our engagement. The land has to be transferred back to the municipality. We’ll have to engage with the community,” Mbengashe added.
A final order on the forfeiture process is expected on Friday.